Bullish Breakout on Gold-to-Silver Ratio
On Sep 23rd we hypothesized that the Gold-to-Silver ratio (XAUXAG) was set to break out:
It has been a two-month long wait for this event to happen during the last week of November. The proposed entry price ratio of 75 would have been reached in the week that followed the publication of the idea without triggering the Stop-Loss that has been brushed against but not contacted:
A continuation move higher of the XAUXAG ratio is likely
While the lower daily time scale looks technically overbought, it is certainly a good idea to buy the ratio into weakness towards the 77 supporting area to target a continuation move higher on the weekly time scale:
Confirmation Trade for the Weakness of Gold and Silver
This scenario will confirm the possibility for both Gold and Silver heading lower with Silver leading the move as long as the red descending resistance lines can hold the price of their respective precious metals:
Disclosure
I am detaining physical gold and will be looking to temporarily cover this position by buying XAUXAG on weakness of the ratio
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